2005年-世界发展银行全球_Republic_of_Poland___Accounting_and_Auditing_41页_715kb

Summary of the REPORT ON THE OBSERVANCE OF STANDARDS AND CODES (ROSC) for Poland

Core Content

This report, prepared by the World Bank and the International Monetary Fund (IMF), evaluates the accounting and auditing practices in Poland, focusing on their alignment with International Financial Reporting Standards (IFRS), International Standards on Auditing (ISA), and the EU acquis communautaire. It also provides policy recommendations to enhance the quality of corporate financial reporting.

Main Points

I. Introduction

• The report is part of a joint initiative by the World Bank and IMF to assess the implementation of international accounting and auditing standards.
• Poland has undergone significant economic and social transformation since the 1990s, with a population of 38.2 million and a GDP per capita of US$11,427 as of end-2004.
• The assessment includes both the legal framework and actual practices in the enterprise and financial sectors.
• The report emphasizes the importance of improving financial reporting to support tax collection, private sector growth, and financial stability.

II. Institutional Framework

A. Statutory Framework

• Poland has implemented the acquis communautaire, which includes EU accounting and auditing directives.
• The Commercial Code (enacted in 2000, last amended in 2003) regulates corporate activities and defines two main corporate forms: limited liability companies (Sp. z o.o.) and joint stock companies (S.A.).
• The Accounting Act (last amended in 2004) is the primary legislation governing accounting and financial reporting, based on the Fourth and Seventh EU Company Law Directives.
• The Auditing Act (dated 1994, as amended) regulates the auditing profession and is based on the Eighth EU Company Law Directive.

B. Accounting and Auditing Requirements

• Statutory Audit Requirements:

  • Apply to all joint stock companies, large limited liability companies, banks, insurance companies, investment funds, and pension funds.
  • Large limited liability companies are defined as those exceeding two of the following thresholds: EUR 2.5 million in total balance sheet, EUR 5 million in net turnover, and 50 employees.
  • As of 2004, approximately 9,800 companies and regulated entities were subject to statutory audit.
  • The total number of audits performed annually is around 20,000, including consolidated audits, voluntary audits, and audits of other entities.

• Accounting Standards:

  • Polish accounting standards are based on the Fourth and Seventh EU Company Law Directives and provide simplified financial reporting for SMEs.
  • Banks and insurance companies are required to follow detailed accounting requirements, with banks using endorsed IFRS for consolidated financial statements and insurance companies using Polish regulations.
  • Listed companies may opt to use IFRS in their consolidated financial statements if they apply for admission to public trading or are subsidiaries of IFRS-compliant parent companies.
  • From 2005, all listed companies and banks (listed and non-listed) must comply with endorsed IFRS for consolidated financial statements.
  • From 2007, issuers of debt securities are required to use endorsed IFRS for consolidated financial statements.

• Audit Standards:

  • The Accounting Act requires that financial statements be signed and dated by the person responsible for keeping the books and all members of the management board.
  • The Auditing Act does not include mechanisms to ensure auditor independence, such as rotation or termination safeguards.
  • However, state-owned companies are required to rotate auditors every five years.
  • The Insurance Act mandates a five-year rotation of audit firms for insurance companies and requires auditors to report urgent regulatory matters.
  • The Banking Act requires bank auditors to report to the Banking Supervision Commission in the case of adverse opinions.

III. Financial Reporting and Audit Practices

• Financial statements are required to include a balance sheet, income statement, cash flow statement, statement of changes in equity, and notes.
• SMEs are allowed simplified reporting under the Accounting Act, with lower thresholds than the EU directives.
• The report highlights the need for better enforcement of accounting and auditing standards and the importance of strengthening monitoring and disciplinary regimes.

IV. Policy Recommendations

• Enhance the quality of financial reporting for public interest entities by requiring the use of IFRS for consolidated financial statements, even though this is not currently mandated by EU law.
• Reassess current statutory audit arrangements in light of the proposed Eighth EU Company Law Directive, which calls for enhanced public oversight of the auditing profession.
• Improve the filing and publication system for financial statements, as it currently lacks efficiency and electronic access.
• Align with EU directives, such as the Transparency Directive, which requires more frequent financial reporting for listed companies (e.g., half-yearly reports).
• Strengthen legal and regulatory frameworks to ensure compliance with IFRS and ISA, and to improve the transparency and reliability of financial reporting.

Key Information

• Number of listed companies: 230 (as of end-2004), including 206 on the main list and 24 on the parallel list.
• Warsaw Stock Exchange (WSE): Total capitalization of PLN 292 billion (approximately EUR 71.5 billion) in 2004, representing about 33% of GDP.
• Penalties for non-compliance:
  • Fines
  • Two years in prison
  • Both (fines and prison)
• SMEs:
  • Defined by two of the following: balance sheet total of EUR 2 million, net turnover of EUR 4 million, and 50 employees.
  • Only approximately 14,600 out of 106,700 companies qualify for simplified reporting.
• Statutory Audit Requirements:
  • Apply to 6,000 joint stock companies and 3,800 large limited liability companies.
  • Approximately 9,800 out of 106,700 limited liability and joint stock companies are subject to statutory audit.
  • Audit reports must be filed with the Court Register within 15 days of approval by the shareholders’ meeting.
  • The Court Register lacks enforcement authority and electronic access to financial statements, making them less accessible.

Conclusion

Poland has made significant progress in aligning its accounting and auditing practices with international standards. However, the report identifies several areas for improvement, including the enforcement of audit standards, the accessibility of financial statements, and the adoption of IFRS for a broader range of entities. Strengthening the institutional framework and ensuring compliance with EU directives are critical steps to further enhance the quality and transparency of financial reporting in Poland.